Capstone Holding Corp. Reaffirms 2025 Financial Targets with Strategic M&A Approach
TL;DR
Capstone Holding (NASDAQ: CAPS) reaffirmed $100M revenue target by 2025, eyeing acquisitions at 4–6x EBITDA multiples for competitive advantage.
Capstone Holding evaluates acquisitions supported by an equity line of credit, aiming for $10M adjusted EBITDA in 2025.
Capstone Holding's growth strategy blends organic growth with M&A, serving 31 U.S. states with proprietary building products to enhance communities.
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Capstone Holding Corp. (NASDAQ: CAPS) has reaffirmed its financial targets for 2025, targeting a $100 million revenue run-rate and $10 million in adjusted EBITDA. The company's strategy hinges on a robust mergers and acquisitions (M&A) pipeline and strict cost control measures.
The company is actively evaluating acquisition opportunities with attractive valuations, specifically targeting businesses valued at 4–6x EBITDA multiples. Notably, up to 45% of potential acquisitions could be completed through non-cash consideration, providing financial flexibility. To support these strategic moves, Capstone has secured an equity line of credit that enables deal execution without immediate shareholder dilution.
Despite seasonal challenges, subsidiary Instone remains on track, maintaining its cost run-rate guidance. The company anticipates growth acceleration in the third quarter, demonstrating resilience in a potentially volatile market.
Capstone's approach represents a calculated growth strategy that balances organic expansion with strategic acquisitions. By maintaining disciplined financial parameters and leveraging its diverse building products platform, the company is positioning itself for sustainable long-term growth in a competitive market.
Curated from InvestorBrandNetwork (IBN)
